Reticle - Structural Reversal GridWhy This Works
Financial markets rarely move in uninterrupted straight lines. Asset prices expand in directional vectors, exhaust themselves, and retrace back toward their origins to trap counter-trend traders before continuing. Reticle is designed to map this structural reality geometrically.
Most traders rely on static, horizontal support and resistance levels. The Reticle engine relies on the mathematical squaring of time and price. By anchoring a vector to a verified structural leg (A to B), the script projects a dynamic diagonal trend floor (the "Death Line") and mathematically subdivides the entire move. Furthermore, historical testing across crypto and legacy markets consistently demonstrates that the 50% to 62.5% retracement band is the highest-probability zone for trend continuation to occur following a structural push.
How This Works
Reticle operates as a dual-engine geometric tracker:
The Anchoring Engine: It auto-detects the dominant macro swing (highest high and lowest low over a specified lookback period) to find the current active leg in the market. It marks the start of the move as Anchor A and the climax as Anchor B.
The Geometry Engine: Once A and B are locked, it draws an 8x8 fractional lattice to subdivide the zone, extends a golden Exhaustion Box highlighting the 50–62.5% retracement levels, and calculates the true geometric "Death Line." The slope of this line dynamically adjusts to the actual ratio of the move, preventing the distortion that usually ruins diagonal trendlines across varying chart scales.
How to Use Reticle
The primary utility of this script is finding high-confluence continuation entries and identifying exact structural invalidation points.
1. Finding Entries in the Exhaustion Zone
Wait for an impulsive move to define Anchors A and B. As the price pulls back from B, watch for it to enter the golden 50–62.5% Exhaustion Box. This is your strike zone. You want to see the price wick into this box and print a strong rejection candle that closes back outside of it. The box dynamically flares red the deeper price pushes into it, visually highlighting peak tension.
2. Managing the Trade via the Death Line
The red diagonal Death Line originating from Anchor A acts as the ultimate structural invalidation. It rises in tandem with time. If the asset respects its market geometry, it should bounce out of the Exhaustion Box and remain on the "safe" side of the Death Line.
3. Trading the Break
If a candle cleanly closes across the Death Line (marked on the chart by a red ✕), the geometric structure of that leg is broken. If you are in a trend-continuation trade, this is your hard exit signal. Conversely, advanced traders can use this Death Line break as an entry trigger to play the structural reversal.
Settings Guide
Every chart and asset breathes differently. Use these settings to perfectly calibrate Reticle to your chosen instrument.
Anchor Mode & MTF
Auto Anchors: Leave this checked to let the script find the A and B swing points automatically. Unchecking it disables the script until you define manual time anchors.
Use Higher Timeframe (MTF) Swings: A powerful feature that allows you to calculate the dominant A→B swing on a macro timeframe (like the Daily) while executing your trades on a lower timeframe (like a 40-minute chart) without losing the structural geometry.
Auto Engine: Choose between "Dominant Swing" (finds the absolute high and low of the lookback window) or "Latest Pivots" (strictly grabs the last two confirmed pivot points).
Dominant Swing Lookback / Pivot Strengths: Adjusts how many bars the script scans to define a swing. Increase these numbers to track massive macro trends; decrease them to trade rapid intraday micro-structures.
Engine Parameters & Squaring
Death Line Slope Basis: Dictates the math behind the red invalidation line.
Auto (A→B Ratio): Recommended. The slope perfectly mirrors the steepness of the structural push.
Squaring Factor: Forces the line to rise by a fixed, absolute price amount per bar, achieving true Gann-style 1x1 squaring.
True Squaring (Price Units per Bar): Active only if "Squaring Factor" is chosen above. Input exactly how many dollars/cents the line should rise per bar (e.g., 100 means a $100 climb per candle).
Death Line Angle ×: Multiplies the final slope. 0.5 acts as a 1x2 support line hugging price action. 1.0 acts as a steep 1x1.
Exhaustion Band Forward Extension: Determines how many bars into the future the golden retracement box is drawn.
Toggle Visuals: Checkboxes to hide or show the Lattice, the Band, the Death Line, and the A→B Vector Spine to keep your chart uncluttered.
Alerts
Select exactly which structural events you want to be notified about. Reticle features a unified alert system that ensures signals are only fired on confirmed candle closes to avoid false wick triggers.
Format Alerts as JSON: Check this box if you are connecting the indicator to automated trading bots via webhooks. It outputs a clean, machine-readable data payload instead of standard text.
Status Table
Show Status Table: Toggles the HUD panel that provides live data readouts regarding the current vector size, slope settings, and the exact percentage distance between current price and the Death Line invalidation.
Position: Move the data panel to any corner of the chart to prevent it from covering active price action. Indicator
RSI Divergence: Out-of-Sample Optimizer [LuxAlgo]The RSI Divergence: Out-of-Sample Optimizer indicator is a comprehensive backtesting and optimization tool designed to identify the most effective RSI period for trading price-RSI divergences within a specified historical window and validate those results through out-of-sample and forward testing.
🔶 USAGE
The script is divided into three distinct chronological phases to simulate a professional quantitative workflow:
🔹 In-Sample (IS) Optimization
During this period (highlighted by the first background gradient), the script simulates dozens of RSI periods simultaneously. It calculates divergence signals and trade outcomes for every period within the user-defined range (e.g., RSI 2 to 50). The "best" period is selected based on your chosen Optimization Metric, such as Net Profit or Profit Factor.
🔹 Out-of-Sample (OOS) Validation
Once the best RSI period is identified in the IS phase, the script "locks" that parameter and applies it to the next segment of data (the OOS period). This tests whether the strategy’s performance was due to genuine market alpha or simply "curve-fitting" to historical noise.
🔹 Forward Testing
The Forward period represents the most recent data leading up to the current bar. The script continues using the parameter validated during the OOS phase to show how the strategy is performing in the current market environment.
🔶 DETAILS
🔹 Divergence Detection
The script identifies regular bullish and bearish divergences. A bullish divergence occurs when price makes a lower low while the RSI makes a higher low. A bearish divergence occurs when price makes a higher high while the RSI makes a lower high. The script uses pivot lookback settings to confirm these peaks and troughs.
🔹 Trade Execution Logic
Trades are entered on the bar following a confirmed divergence. Stop loss and take profit levels are calculated using an ATR (Average True Range) multiplier to account for market volatility. Users can also enable "Exit on Opposite Signal" to close trades if a contrary divergence appears before hitting a price target.
🔹 Sensitivity Analysis (Heatmap)
The dashboard includes a "Sensitivity Table" that acts as a heatmap. It displays every RSI period tested during the In-Sample phase. Darker green cells indicate superior performance, while darker red cells indicate poorer performance based on the selected optimization metric. This allows you to see if your "best" setting is an outlier or part of a robust cluster of profitable periods.
🔶 SETTINGS
🔹 Optimization & Backtest Ranges
In-Sample Start/End: Defines the historical window used to find the best performing RSI period.
Out-of-Sample Start/End: Defines the validation window where the best IS period is tested on unseen data.
Min/Max RSI Period: The range of RSI lengths the script will simulate (e.g., 2 to 50).
Optimization Metric: The primary KPI used to rank RSI periods (e.g., Sharpe Ratio, Win Rate, Net Profit).
🔹 Divergence Settings
Pivot Left/Right Bars: The number of bars required on either side of a point to confirm a local high or low in the RSI.
Max Divergence Bars: The maximum distance allowed between two pivots to qualify as a divergence.
🔹 Trade Rules
Stop Loss/Take Profit ATR Multiplier: Controls the distance of exit levels based on recent volatility.
Exit on Opposite Signal: When enabled, a long trade will close immediately if a bearish divergence is detected.
🔹 Dashboard
Extra Dashboard Metric 1/2: Allows you to add two additional performance statistics to the dashboard (e.g., Z-Score or Average Trade) alongside the default metrics.
Dashboard Position/Size: Adjusts the UI elements to fit your screen resolution and preference.
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Liquidity Delta Profiler [LuxAlgo]The Liquidity Delta Profiler indicator identifies major buy-side and sell-side liquidity levels and visualizes internal buyer/seller activity through volume delta-filled quadrants, providing a complete toolkit for analyzing liquidity sweeps and potential reversals.
🔶 USAGE
The indicator detects significant swing highs and lows to plot liquidity zones, representing areas where stop-loss orders or breakout orders are likely clustered.
🔹 Volume Delta Quadrants
Unlike standard liquidity indicators, this tool splits each zone into four horizontal quadrants. As price trades within these quadrants, the script calculates the volume delta (the difference between buying and selling pressure) for each specific section.
Buy Delta Fill : Indicates aggressive buyers were more active in that specific price slice.
Sell Delta Fill : Indicates aggressive sellers dominated that section.
Intensity : The color's opacity represents the relative magnitude of the volume delta compared to other sections of the zone.
🔹 Reversal Detection
The script includes an advanced detection system that identifies unusual volume patterns during liquidity sweeps. These signals are plotted as bubbles with hoverable tooltips:
ABS (Absorption) : Occurs when aggressive market orders at the extreme edge of a zone are absorbed by large limit orders in the opposite direction.
EXH (Exhaustion) : Occurs when a sweep happens on very low relative volume, suggesting no follow-through.
DIV (Divergence) : Identified when high volume pushes into the edge of a zone (FOMO) but price fails to close outside the level.
REJ (Snapback Rejection) : Triggered when a sweep candle shows high delta in the opposite direction of the sweep and closes back inside the zone.
🔹 Time-Based Performance Dashboard
To evaluate signal reliability, the indicator includes a real-time dashboard that tracks the historical performance of each reversal signal type using a time-based validation logic.
A "Win" is recorded if, within the Eval Window , the price reverses from the sweep and remains in profit (on the correct side of the signal entry) for a specific number of consecutive bars ( Hold Time ). This method filters for signals that generate sustained pressure rather than just temporary wicks.
🔹 Zone Decay (Health)
Active zones feature a "Health" percentage label. This tracks the cumulative volume traded within the zone relative to its capacity. As more volume is transacted at these levels, the liquidity is considered "consumed," and the percentage drops toward 0%.
🔶 DETAILS
The indicator utilizes a pivot-based detection system. When a swing high is confirmed, a Buy-Side Liquidity (BSL) zone is created; a swing low creates a Sell-Side Liquidity (SSL) zone.
The script includes "Filter Overlaps" logic to ensure chart clarity. If a new, more significant pivot forms within the range of an existing active zone, the tool can automatically update to the most relevant level, preventing the clutter of multiple overlapping boxes.
🔶 SETTINGS
🔹 Main
Pivot Length : Lookback/lookforward period for detecting swing highs and lows.
Max Zones per Type : Maximum number of active and historical zones to keep on the chart.
Show Swept Zones : Keeps zones visible with dashed outlines after they have been breached.
Filter Overlapping Zones : Prevents the creation of new zones that overlap with existing active zones.
🔹 Decay & Reversals
Show Zone Decay : Toggles the health percentage labels.
Zone Volume Capacity : Multiplier for average volume to determine how much volume a zone can absorb.
Enable Reversal Detection : Toggles the signal bubbles for reversal patterns.
🔹 Dashboard
Show Dashboard : Toggles the performance tracking table.
Eval Window (Bars) : The maximum number of bars the script waits for a reversal to manifest.
Hold Time (Bars) : The number of consecutive bars price must stay in profit to be considered a successful reversal.
Position/Size : Customizes the UI placement and scale of the dashboard.
🔹 Style
Colors : Customize colors for BSL/SSL outlines and the positive/negative volume delta fills. Indicator
Inertial RSI [LuxAlgo]The Inertial RSI indicator introduces a novel approach to momentum smoothing by implementing "Forced Persistence," a technique that achieves stability at the mathematical source rather than through traditional lagging filters. By dynamically optimizing the RSI lookback period on every bar to minimize the variation between consecutive values, the tool effectively creates an inertial effect that resists erratic market noise and "sawtooth" fluctuations, providing a significant advantage over standard oscillators by maintaining a high degree of smoothness and trend coherence without the heavy group delay typically introduced by long-period moving averages.
🔶 USAGE
The indicator is used similarly to a standard Relative Strength Index (RSI) but with significantly reduced noise and more stable transitions. It helps traders identify momentum and overbought/oversold conditions while maintaining a more consistent trajectory, making it easier to interpret the underlying market trend without being shaken out by minor price jitters.
🔹 Forced Persistence
Traditional oscillators achieve smoothness by applying lagging filters (like moving averages) to a fixed-length calculation. The Inertial RSI introduces the concept of "Forced Persistence," where smoothing is achieved by selecting the input data dynamically. By selecting the lookback length that results in the smallest change from the previous bar, the oscillator "forces" itself to remain stable. This allows the indicator to stay at extreme levels during strong trends or transition smoothly during reversals without the typical noise found in fixed-length oscillators.
🔹 Interpretation
Inertial RSI (Solid): Represents the primary smoothed RSI value. It changes color based on whether it is above or below the 50 centerline (Bullish/Bearish).
Signal Line (Dotted): A secondary signal line calculated as a simple moving average of the RSI line, used to identify potential local crossovers or momentum shifts.
Zones: The area between the RSI line and the 50 level is filled with a gradient to highlight the strength and direction of the current momentum.
🔶 DETAILS
The core logic of the script is an optimization loop that runs on every bar. Instead of using one fixed value for N (the lookback period), the algorithm evaluates every possible integer length within the user-defined range (from Minimum Length to Maximum Length).
For each potential length, the script calculates a raw RSI value using an RMA-based approach (Wilder's Moving Average) for consistent bar-to-bar logic. It then measures the absolute difference between that candidate value and the final output from the previous bar. The algorithm "hunts" for the specific length that minimizes this difference:
Best RSI = min(|Current Candidate(N) - Previous Final RSI|)
By selecting the value that is most similar to the previous one, the indicator effectively filters out market noise by choosing a lookback window that "agrees" with the current trend's inertia. This methodology allows the oscillator to be responsive to major price shifts while ignoring minor fluctuations that do not significantly alter the internal relative strength calculation.
🔶 SETTINGS
🔹 Settings
Minimum Length: The shortest lookback period the algorithm can consider for the optimization loop.
Maximum Length: The longest lookback period the algorithm can consider. A wider range between min/max allows for more "inertia" but increases computational intensity.
RSI Smoothing: The length of the SMA used to provide a final aesthetic smoothing to the inertial RSI value.
Signal Line Length: The length of the SMA used to create the signal line from the smoothed RSI.
🔹 Visuals
Show Gradient Fill: Enables or disables the gradient fill between the RSI line and the 50 centerline.
Bullish Color: Defines the color of the RSI line and the upper gradient fill when the value is above 50.
Bearish Color: Defines the color of the RSI line and the lower gradient fill when the value is below 50.
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Correlated Sine Oscillator [LuxAlgo]The Correlated Sine Oscillator indicator identifies and isolates cyclical components within price action to generate a normalized, phase-aligned sinusoid that fluctuates between -1 and 1.
🔶 USAGE
The Correlated Sine Oscillator is designed to help traders visualize the underlying rhythm of the market by projecting price data onto a mathematical sine wave. Unlike standard momentum oscillators, this tool uses quadrature components to determine the current "phase" of the market cycle, allowing the oscillator to stay synced with price swings.
🔹 Identifying Cycle Direction
The oscillator fluctuates within a fixed range of -1 to 1, centered around a zero line. Signals are generated based on the crossing of this midpoint to identify shifts in the dominant cycle.
Bullish Signals: When the oscillator crosses above the zero line, a bullish triangle (▲) appears below the price bar, signaling the start of a rising phase in the cycle. Bearish Signals: When the oscillator crosses below the zero line, a bearish triangle (▼) appears above the price bar, signaling the start of a falling phase in the cycle. Cycle Extremes: While signals occur at the midline, values approaching 1 or -1 represent the peak and trough of the identified cycle, respectively.
🔹 The Phase Multiplier
The Phase Multiplier setting is a unique feature that controls how responsively the oscillator adapts to changes in price direction. Since the indicator uses an average of the real and imaginary components to find the phase, increasing this multiplier will result in a smoother, more stable oscillator that is less prone to noise but slightly more lagging. Lowering the multiplier makes the oscillator react faster to price shifts, which can be useful for identifying quick reversals.
🔶 DETAILS
The construction of the Correlated Sine Oscillator follows a sophisticated signal processing workflow:
Detrending: The script first removes the trend by subtracting a Simple Moving Average (SMA) from the closing price. This isolates the high-frequency fluctuations (cycles) around a mean of zero. Quadrature Projection: The detrended price is projected onto both a Sine and Cosine wave (real and imaginary components) based on the user-defined Cycle Period . Phase Estimation: By calculating the arctangent of these components, the script derives the "Dynamic Phase." This tells us exactly where the current price sits within the theoretical cycle. Correlation: Finally, the script generates a synthetic sine wave that is shifted by the calculated phase, ensuring the output is perfectly correlated with the dominant frequency of the price action.
🔶 SETTINGS
Cycle Period: Determines the primary wavelength (in bars) that the indicator looks for in the price data. Setting this to 20 means the oscillator is tuned to find cycles that repeat every 20 bars. Phase Multiplier: A multiplier applied to the Cycle Period to determine the smoothing length of the internal phase components. A higher value leads to a "cleaner" wave, while a lower value follows price more aggressively. Bullish Color: Controls the color of the oscillator and gradient fill when the value is above zero. Bearish Color: Controls the color of the oscillator and gradient fill when the value is below zero. Indicator
Normalized Resonator [LuxAlgo]The Normalized Resonator indicator provides a specialized bandpass oscillator designed to isolate specific market cycles while maintaining a normalized scale for overbought and oversold analysis.
🔶 USAGE
The indicator can be used to identify cyclical turns in the market by isolating a specific frequency (period) and filtering out noise. Traders can use the oscillator to spot potential reversals when the price reaches extreme levels or when the main line crosses its signal line.
🔹 Trend Identification
Beyond reversal signals, the oscillator serves as a momentum and trend filter. When the oscillator is sustained above the zero line, it indicates a bullish cycle where the isolated frequency is currently in an upward phase. Conversely, values below zero indicate a bearish cycle. The distance from the zero line represents the strength of the cycle relative to its recent historical peaks.
🔹 Filtering and Momentum
The "Bandwidth" setting is crucial for practical application. A lower bandwidth (e.g., 0.1 - 0.3) creates a sharper filter that is highly selective of the central period, which is useful for identifying very specific recurring cycles but may increase lag. A wider bandwidth (e.g., 0.5 - 0.8) allows more price movement through, making the oscillator more reactive to momentum shifts and broader market swings.
🔹 Trading Signals
The script features built-in signals that appear on the main chart to highlight potential exhaustion points:
Bullish Reversal: Indicated by a green "▲" label below the price. This occurs when the oscillator crosses above the signal line while below the oversold threshold.
Bearish Reversal: Indicated by a red "▼" label above the price. This occurs when the oscillator crosses below the signal line while above the overbought threshold.
🔹 Combining with Price Action
For the best results, traders should look for confluence between the resonator signals and price action structures. For example, a bullish crossover occurring at a major horizontal support level or a trendline adds significant weight to the signal.
In trending markets, the resonator can be used to "buy the dip" by looking for bullish signals that occur when the higher-timeframe trend is up, rather than attempting to catch every reversal in both directions.
🔶 DETAILS
The script is built upon a digital resonator filter, which is a type of second-order bandpass filter. Unlike standard oscillators that use moving average differences, a resonator is mathematically tuned to "vibrate" at a specific frequency (the Center Period).
🔹 Normalization
Standard bandpass filters often have varying amplitudes depending on market volatility, which makes static levels difficult to use. This script solves this by implementing a normalization process. It calculates the highest absolute peak of the filter output over a rolling lookback period.
By dividing the raw filter output by this peak, the oscillator is squeezed into a range typically between -1 and +1, allowing for consistent Overbought (OB) and Oversold (OS) levels regardless of the asset's price scale or volatility.
🔶 SETTINGS
Center Period: The primary cycle length (in bars) the filter aims to isolate.
Bandwidth: Determines the width of the passband. Lower values result in a very sharp, selective filter. Higher values allow more frequencies to pass.
Lookback Multiplier: Sets the normalization window as a multiple of the Center Period. A value of 1.0 means the peak is searched for over a window equal to the Center Period.
Signal Line Period: The smoothing length for the Signal Line (EMA).
Overbought/Oversold: The threshold levels used to trigger the chart signals.
Signal Size: Adjusts the visual size of the "▲" and "▼" labels on the chart.
Indicator
Recursive Least Squares Forecast [LuxAlgo]The Recursive Least Squares Forecast indicator uses an adaptive linear regression algorithm to estimate price trends in real-time, projecting future movements via a "Ghost Line" and providing dynamic bands and mean reversion signals for identifying market extremes.
By continuously updating its internal model with every new bar, the script provides a highly responsive framework for both trend forecasting and volatility-adjusted trading.
🔶 USAGE
The indicator aims to identify trend direction and potential exhaustion points. The central RLS mean line represents the current equilibrium price based on the adaptive model, while the bands represent volatility-adjusted extremes.
Users can utilize the tool for both trend following and mean reversion strategies:
Trend Following: Observe the slope and direction of the RLS Mean and the "Ghost Line" projection to determine the prevailing market bias.
Mean Reversion: Use the dynamic bands to identify when price has deviated significantly from its adaptive equilibrium.
Responsiveness: Adjust the Forgetting Factor (λ) to control the model's memory. A lower value (e.g., 0.95) makes the model react quickly to new price pivots, while a higher value (e.g., 0.99) provides a smoother, more stable trend line.
🔹 Mean Reversion Signals
The indicator identifies mean reversion opportunities using a two-step process:
Overextension: A setup begins when the price crosses outside the Upper or Lower Band, indicating an overbought or oversold state.
Entry Signal: A "BUY" or "SELL" signal is triggered when the price crosses back inside the band, suggesting a return to the RLS mean.
Targets: The RLS mean line serves as the primary take-profit target for these mean reversion setups.
🔶 DETAILS
The model assumes a linear relationship where the intercept and slope are updated recursively. The RLS algorithm is an adaptive filter that effectively "learns" the trend at every bar. It uses a state-space approach where the transition matrix is updated using a gain vector, ensuring the most efficient estimate of the current trend trajectory.
Unlike standard Moving Averages, the Recursive Least Squares (RLS) algorithm minimizes the sum of squared prediction errors by giving more weight to recent data. This allows the mean line to pivot quickly when market conditions change without the lag associated with traditional smoothing techniques.
The "Ghost Line" extends from the last bar into the future, providing a linear projection of where the current trend is headed. Surrounding this projection are "Standard Deviation Forecast Bands," which indicate the expected range of price movement based on the current model state.
🔶 SETTINGS
Forgetting Factor (λ): Controls how quickly the model forgets old data. Values closer to 1.0 make the model stable, while lower values make it more adaptive to recent price changes.
Band Multiplier: Standard deviation multiplier for the forecast bands, controlling the width of the mean reversion zones.
Forecast Horizon: Number of bars to project the "Ghost Line" and uncertainty bands into the future.
Show Ghost Line & Bands: Toggles the visibility of the future projection polylines.
Show Mean Reversion Signals: Toggles the visibility of the BUY/SELL labels on the chart.
Indicator
Dynamic Extreme Channels & Reversals [LuxAlgo]The Dynamic Extreme Channels & Reversals indicator provides an adaptive framework for identifying price extremes and trend shifts through self-adjusting boundaries. Unlike static channels, this tool dynamically resets its levels based on price activity, offering a responsive environment for trend following and mean-reversion analysis.
🔶 USAGE
The indicator functions by tracking the highest highs and lowest lows over a specific window. When the price fails to make a new extreme within the defined period, the boundaries contract toward the current price action. This behavior creates a "breathing" channel that adapts to market volatility and consolidation phases.
Users can toggle between two primary viewing modes:
Channel Mode: Displays the upper, lower, and midline boundaries. This is ideal for identifying overextended price levels and potential mean-reversion targets.
Trailing Stop Mode: Simplifies the visual output into a single step-line that tracks the lower boundary during uptrends and the upper boundary during downtrends, serving as a dynamic exit or trend-following level.
🔹 Reversal Signals
The script includes built-in reversal signals designed to catch "blow-off" tops or "panic" bottoms where price briefly exceeds a boundary but immediately loses momentum.
Bullish Signal (▲): Occurs when the price hits a new lower extreme (LL) but the current candle manages to peak back above the channel midline.
Bearish Signal (▼): Occurs when the price hits a new higher extreme (HH) but the current candle manages to drop below the channel midline.
The sensitivity and frequency of these signals are directly influenced by the Lookback Period and Reset Alpha % :
Lookback Period: A shorter lookback causes the channel boundaries to "reset" more frequently. This results in tighter channels and more frequent reversal signals, as the midline becomes easier to cross. A longer lookback creates wider, more stable channels, resulting in fewer, high-conviction signals.
Reset Alpha %: This determines how aggressively the levels move toward the price after the lookback period expires. A high Alpha (e.g., 100%) creates sharp adjustments, which can lead to rapid signal generation during choppy markets. A lower Alpha creates smoother transitions, filtering out noise in the reversal logic.
🔶 DETAILS
The core logic avoids standard rolling maximum/minimum functions to provide a more "sticky" boundary. Instead of the channel edge constantly moving with every bar, it remains fixed until a new extreme is reached or the "timer" (Lookback Period) runs out.
When the timer runs out, the level interpolates toward the price based on the Reset Alpha. This simulates a decaying memory of past price extremes, ensuring the indicator remains relevant even after long periods of sideways movement.
🔶 SETTINGS
🔹 Core Settings
Lookback Period: The number of bars the indicator waits before adjusting an extreme level if no new high/low is found.
Reset Alpha %: Controls the intensity of the level adjustment. 100% resets the level entirely to the current price, while 0% keeps it static.
Trailing Stop Mode: Switches the display from a three-line channel to a single trend-following stop line.
🔹 Visuals
Show Reversal Signals: Toggles the visibility of the triangle reversal labels.
Upper Color: Customizes the color and transparency of the upper boundary.
Midline Color: Customizes the color and transparency of the center line.
Lower Color: Customizes the color and transparency of the lower boundary.
🔹 Dashboard
Dashboard: Toggles the on-screen information panel.
Position: Controls the location of the dashboard on the chart.
Size: Controls the scale of the dashboard text and cells.
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Amihud Illiquidity Ratio [MarkitTick]💡This indicator implements the Amihud Illiquidity Ratio, a financial metric designed to measure the price impact of trading volume. It assesses the relationship between absolute price returns and the volume required to generate that return, providing traders with insight into the "stress" levels of the market liquidity.
Concept and Originality
Standard volume indicators often look at volume in isolation. This script differentiates itself by contextualizing volume against price movement. It answers the question: "How much did the price move per unit of volume?" Furthermore, unlike static indicators, this implementation utilizes dynamic percentile zones (Linear Interpolation) to adapt to the changing volatility profile of the specific asset you are viewing.
Methodology
The calculation proceeds in three distinct steps:
1. Daily Return: The script calculates the absolute percentage change of the closing price relative to the previous close.
2. Raw Ratio: The absolute return is divided by the volume. I have introduced a standard scaling factor (1,000,000) to the calculation. This resolves the issue of the values being astronomically small (displayed as roughly 0) without altering the fundamental logic of the Amihud ratio (Absolute Return / Volume).
- High Ratio: Indicates that price is moving significantly on low volume (Illiquid/Thin Order Book).
- Low Ratio: Indicates that price requires massive volume to move (Liquid/Deep Order Book).
3. Dynamic Regimes: The script calculates the 75th and 25th percentiles of the ratio over a lookback period. This creates adaptive bands that define "High Stress" and "Liquid" zones relative to recent history.
How to Use
Traders can use this tool to identify market fragility:
- High Stress Zone (Red Background): When the indicator crosses above the 75th percentile, the market is in a High Illiquidity Regime. Price is slipping easily. This is often observed during panic selling or volatile tops where the order book is thin.
- Liquid Zone (Green Background): When the indicator drops below the 25th percentile, the market is in a Liquid Regime. The market is absorbing volume well, which is often characteristic of stable trends or accumulation phases.
- Dashboard: A visual table on the chart displays the current Amihud Ratio and the active Market Regime (High Stress, Normal, or Liquid).
Inputs
- Calculation Period: The lookback length for the average illiquidity (Default: 20).
- Smoothing Period: The length of the additional moving average to smooth out noise (Default: 5).
- Show Quant Dashboard: Toggles the visibility of the on-screen information table.
● How to read this chart
• Spike in Illiquidity (Red Zones)
Price is moving on "thin air." Expect high volatility or potential reversals.
• Low Illiquidity (Green/Stable Zones)
The market is deep and liquid. Trends here are more sustainable and reliable.
• Divergence
Watch for price making new highs while liquidity is drying up—a classic sign of an exhausted trend.
Example:
● Chart Overview
The chart displays the Amihud Illiquidity indicator applied to a Gold (XAUUSD) 4-hour timeframe.
Top Pane: Price action with manual text annotations highlighting market reversals relative to liquidity zones.
Bottom Pane: The specific technical indicator defined in the logic. It features a Blue Line (Raw Illiquidity), a Red Line (Signal/Smoothed), and dynamic background coloring (Red and Green vertical strips).
● Deep Visual Analysis
• High Stress Regime (Red Zones)
Visual Event: In the bottom pane, the background periodically shifts to a translucent red.
Technical Logic: This event is triggered when the amihudAvg (the smoothed illiquidity ratio) exceeds the 75th percentile ( hZone ) of the lookback period.
Forensic Interpretation: The logic calculates the absolute price change relative to volume. A spike into the red zone indicates that price is moving significantly on relatively lower volume (high price impact). Visually, the chart shows these red zones aligning with local price peaks (volatility expansion), leading to the bearish reversal marked by the red box in the top pane.
• Liquid Regime (Green Zones)
Visual Event: The background shifts to a translucent green in the bottom pane.
Technical Logic: This triggers when the amihudAvg falls below the 25th percentile ( lZone ).
Forensic Interpretation: This state represents a period where large volumes are absorbed with minimal price impact (efficiency). On the chart, this green zone corresponds to the consolidation trough (green box, top pane), validating the annotated accumulation phase before the bullish breakout.
• Indicator Lines
Blue Line: This is the illiquidityRaw value. It represents the raw daily return divided by volume.
Red Line: This is the smoothedVal , a Simple Moving Average (SMA) of the raw data, used to filter out noise and define the trend of liquidity stress.
● Anomalies & Critical Data
• The Reversal Pivot
The transition from the "High Stress" (Red) background to the "Liquid" (Green) background serves as a visual proxy for market regime change. The chart shows that as the Red zones dissipate (volatility contraction), the market enters a Green zone (efficient liquidity), which acted as the precursor to the sustained upward trend on the right side of the chart.
● About Yakov Amihud
Yakov Amihud is a leading researcher in market liquidity and asset pricing.
• Brief Background
Professor of Finance, affiliated with New York University (NYU).
Specializes in market microstructure, liquidity, and quantitative finance.
His work has had a major impact on both academic research and practical investment models.
● The Amihud (2002) Paper
In 2002, he published his influential paper: “Illiquidity and Stock Returns: Cross-Section and Time-Series Effects” .
• Key Contributions
Introduced the Amihud Illiquidity Measure, a simple yet powerful proxy for market liquidity.
Demonstrated that less liquid stocks tend to earn higher expected returns as compensation for liquidity risk.
The measure became one of the most widely used liquidity metrics in finance research.
● Why It Matters in Practice
Used in quantitative trading models.
Applied in portfolio construction and risk management.
Helpful as a liquidity filter to avoid assets with excessive price impact.
In short: Yakov Amihud established a practical and robust link between liquidity and returns, making his 2002 work a cornerstone in modern financial economics.
Disclaimer: All provided scripts and indicators are strictly for educational exploration and must not be interpreted as financial advice or a recommendation to execute trades. I expressly disclaim all liability for any financial losses or damages that may result, directly or indirectly, from the reliance on or application of these tools. Market participation carries inherent risk where past performance never guarantees future returns, leaving all investment decisions and due diligence solely at your own discretion. Indicator
Island Reversal [LuxAlgo]The Island Reversal tool allows traders to identify reversal patterns directly on the chart. These patterns signal a potential change in trend, either from bullish to bearish or vice versa.
The tool enables traders to filter these patterns by trend, volume, and range, making it easy to display pure or less constrained island reversals.
🔶 USAGE
An island reversal pattern may indicate a change in trend. It occurs when prices change direction from an uptrend to a downtrend, or vice versa.
This pattern is a great tool for timing the market. Traders should be aware of when these patterns develop and watch how prices behave after the pattern forms.
Now, let's take a closer look at one of these island reversal patterns to highlight its different components.
The different parts are depicted in the image above.
1. A trend prior to the pattern
2. A gap starts the pattern.
3. A range of prices
4. A final gap, opposite to the first one, closes the pattern.
5. In this case, the pattern leads to a bearish trend, which is opposite to the trend in the first step.
🔹 Trend, Volume and Range Filters
Enabling the trend filter causes the tool to only detect top island reversals during a bullish trend and bottom island reversals during a bearish trend.
Traders can adjust the size of the detected trend in the settings panel. The larger the trend size, the more relevant the reversal patterns can be.
The volume filter only detects reversal patterns if there is more volume within the range of the pattern than in the preceding trend.
The idea is that more people tend to participate at the top and bottom of a trend as it changes direction.
The tool has two range filters that discriminate the range within the island reversal pattern:
Horizontality Filter (R2): Based on the R-squared statistic from linear regression, it detects whether the price is moving sideways within the range.
Volatility Filter: Based on long-term volatility, it detects the size of the range within the pattern.
The smaller the value in the Horizontality Filter, the more horizontal the prices will be within the range. A larger value will detect more reversal patterns.
The larger the value in the Volatility Filter, the larger the ranges will be. A smaller value will detect fewer reversal patterns.
🔶 SETTINGS
🔹 Trend Filter
Trend Filter: Enable or disable the trend filter.
Trend Length: Select the size of the detected trend.
🔹 Volume Filter
Volume Filter: Enable or disable the volume filter.
🔹 Range Filter
Horizontality Filter (R2): Enable or disable the Horizontality filter and select a threshold value.
Volatility Filter: Enable or disable the Volatility filter and select the multiplier value.
🔹 Style
Bullish: Select a color for bullish sessions.
Bearish: Select a color for bearish sessions.
Transparency: Select a transparency level from 100 to 0.
Indicator
Outside the Bollinger Bands Alerting Indicator Overview
The Outside the Bollinger Bands Alerting Indicator is a comprehensive technical analysis tool that combines multiple proven
indicators into a single, powerful system designed to identify high-probability reversal patterns at Bollinger Band extremes. This
indicator goes beyond simple band touches to detect sophisticated pattern formations that often signal strong directional moves.
Key Features & Capabilities
🎯 Advanced Pattern Recognition
Bollinger Band Breakout Patterns
- Detects "pierce-and-reject" formations where price breaks through a Bollinger Band but immediately reverses back inside
- Identifies failed breakouts that often lead to strong moves in the opposite direction
- Combines multiple confirmation signals: engulfing candle patterns, MACD momentum, and ATR volatility filters
- Visual alerts with symbols positioned below (bullish) or above (bearish) candles
Tweezer Top & Bottom Patterns
- Identifies consecutive candles with nearly identical highs (tweezer tops) or lows (tweezer bottoms)
- Requires at least one candle to breach the respective Bollinger Band
- Confirms reversal with directional close requirements
- Customizable tolerance settings for pattern sensitivity
- Visual alerts with ❙❙ symbols for easy identification
📊 Multi-Indicator Integration
Bollinger Bands Indicator
- Dual-band configuration with outer (2.0 std dev) and inner (1.5 std dev) bands that can be adjusted to suit your own parameters
- Configurable MA types: SMA, EMA, SMMA (RMA), WMA, VWMA
- Customizable length, source, and offset parameters
- Color-coded band fills for visual clarity
Moving Average Suite
- EMA 9, 21, 50, and 200 (individually toggleable)
- Special "SMA 3 High" for help visualizing and detecting Bollinger Band break-outs
- Dynamic color coding based on price relationship
Optional Ichimoku Cloud overlay
- Complete Ichimoku implementation with customizable periods
- Dynamic cloud coloring based on trend direction
- Toggleable overlay that doesn't interfere with other indicators
🚨 Comprehensive Alert System
Real-Time JSON Alerts
- Sends structured data on every confirmed bar close
- Includes all indicator values: BB levels, EMAs, MACD, RSI
- Contains signal states and crossover conditions
- Perfect for automated trading systems and webhooks
{"timestamp":1753118700000,"symbol":"ETHUSD","timeframe":"5","price":3773.3,"bollinger_bands":{"upper":3826.95,"basis":3788.32,"lower":3749.68},"emas":{"ema_9":3780.45,"ema_21":3788.92,"ema_50":3800.79,"ema_200":3787.74,"sma_3_high":3789.45},"macd":{"macd":-10.1932,"signal":-11.3266,"histogram":1.1334},"rsi":{"rsi":40.5,"rsi_ma":39.32,"level":"neutral"}}
Specific Alert Conditions
- MACD histogram state changes (rising to falling, falling to rising)
- RSI overbought/oversold crossovers
- All pattern detections (BB Bounce, Tweezer patterns)
- Bollinger Band breakout alerts
🎨 Visual Elements
Pattern Identification
- ♻ symbols for Bollinger Band breakout patterns (green for bullish, red for bearish)
- ❙❙ symbols for tweezer patterns (green below for bottoms, red above for tops)
- Color-coded band fills for trend visualization
Chart Overlay Options
- All moving averages with distinct colors
- Bollinger Bands with inner and outer boundaries
- Optional Ichimoku cloud with trend-based coloring
Trading Applications
Reversal Trading
- Identify high-probability reversal points at extreme price levels
- Use failed breakout patterns for entry signals
- Combine multiple timeframes for enhanced accuracy
Trend Analysis
- Monitor moving average relationships for trend direction
- Use Ichimoku cloud for trend strength assessment
- Track momentum with MACD and RSI integration
Risk Management
- ATR-based volatility filtering reduces false signals
- Multiple confirmation requirements improve signal quality
- Real-time alerts enable prompt decision making
Suggested Use
- Use on multiple timeframes for confluence
- Combine with support/resistance levels for enhanced accuracy
- Set up alerts for hands-free monitoring
- Customize settings based on market volatility and trading style
- Consider volume confirmation for stronger signals
Indicator
Indicator
Indicator
3 Bar Reversal3 Bar Reversal
This pattern is described in John Carter's "Mastering the Trade"
The 3 Bar Reversal indicator is a simple but effective price action tool designed to highlight potential short-term reversals in market direction. It monitors consecutive bar behavior and identifies turning points based on a three-bar pattern. This tool can assist traders in spotting trend exhaustion or early signs of a reversal, particularly in scalping or short-term trading strategies.
How It Works
This indicator analyzes the relationship between consecutive bar closes:
It counts how many bars have passed since the price closed higher than the previous close (barssince(close >= close )) — referred to as an "up streak".
It also counts how many bars have passed since the price closed lower than the previous close (barssince(close <= close )) — known as a "down streak".
A reversal condition is met when:
There have been exactly 3 bars in a row moving in one direction (up or down), and
The 4th bar closes in the opposite direction.
When this condition is detected, the script performs two actions:
Plots a triangle on the chart to signal the potential reversal:
A green triangle below the bar for a possible long (buy) opportunity.
A red triangle above the bar for a possible short (sell) opportunity.
Triggers an alert condition so users can set notifications for when a reversal is detected.
Interpretation
Long Signal: The market has printed 3 consecutive lower closes, followed by a higher close — suggesting bullish momentum may be emerging.
Short Signal: The market has printed 3 consecutive higher closes, followed by a lower close — indicating possible bearish momentum.
These patterns are common in market retracements and can act as confirmation signals when used with other indicators such as RSI, MACD, support/resistance, or volume analysis.
Usage Examples
Scalping: Use the reversal signal to quickly enter short-term trades after a short-term exhaustion move.
Swing Trading: Combine this with trend indicators (e.g., moving averages) to time pullbacks within larger trends.
Confirmation Tool: Use this indicator alongside candlestick patterns or support/resistance zones to validate entry or exit points.
Alert Setup: Enable alerts based on the built-in alertcondition to receive instant notifications for potential trade setups.
Limitations
The 3-bar reversal logic does not guarantee a trend change; it signals potential reversals, which may need confirmation.
Best used in conjunction with broader context such as trend direction, market structure, or other technical indicators.
Indicator
Long Wick Detector [LuxAlgo]The Long Wick Detector tool allows traders to identify candle wicks longer than a user-defined volatility threshold. This makes it useful for spotting zones with high supply or demand.
The tool displays mitigated and unmitigated levels and changes the color of the candles based on wick size and level breakouts.
🔶 USAGE
By default, the tool displays long mitigated and unmitigated candle wicks, with a maximum duration for an unmitigated long wick of 1,000 bars. What does all this mean?
🔹 Wick Threshold
Traders can adjust the volatility threshold to identify long wicks, with a higher threshold detecting more significant wicks.
As we can see in the image above, the tool detects more wicks with a smaller threshold compared to a higher one.
🔹 Level %
Traders can choose the percentage of the wick at which the level is located. By default, the level is displayed at the extremes of the wick. This parameter accepts values between 0 and 100.
100: extreme of the wick
50: middle of the wick
0: start of the wick
🔹 Max Duration
This parameter allows traders to specify the number of bars for the levels. The tool will only display mitigated or unmitigated levels up to the specified number of bars.
As shown in the above image, a longer duration allows more room for mitigation, displaying more levels.
🔹 Colored Candles
The tool allows for color customization using two parameters from the settings panel. The chart shows the different outputs.
The setting "Wick-Based Transparency" makes candles with smaller wicks less visible and candles with longer wicks more visible.
On the other hand, "Breakout-Based Color" changes the base color of the candles based on the mitigation of long wicks. When the price breaks above a detected top wick, the bullish color is used. When the price breaks below a detected bottom wick, the bearish color is used.
🔶 SETTINGS
Wick Threshold: The volatility threshold for wick detection. Use a smaller value to detect smaller wicks.
Level %: Placement of the plotted level relative to the wick.
Max Duration: The maximum duration in bars of mitigated wicks.
Mitigated Wicks: Enable or disable mitigated wicks.
🔹 Style
Wick Based Transparency: Make candles with smaller wicks more transparent and candles with longer wicks more solid.
Breakout Based Color: Change the base color based on wick mitigation.
Bullish & Bearish Colors
Indicator
Indicator
Adaptive Momentum Oscillator [LuxAlgo]The Adaptive Momentum Oscillator tool allows traders to measure the current relative momentum over a given period using the maximum delta in price.
It features a histogram with gradient color, divergences, and an adaptive moving average that allows traders to clearly see the smoothed trend direction.
🔶 USAGE
This unbounded oscillator has positive momentum when values are above 0 and negative momentum when values are below 0. The adaptive moving average is used as a minimum lag smoothing tool over the momentum histogram.
🔹 Signal Line
There are two main uses for the signal line drawn on the chart above.
Momentum crosses above or below the signal line: acceleration in momentum.
Signal line crosses the 0 value: positive or negative momentum.
🔹 Data Length
On the chart above, we can compare different length sizes and how the tool values change, allowing traders to get a shorter or longer-term view of current market strength.
🔹 Smoothing Length
In the previous figure, we can compare how different Smoothing Length values affect the oscillator output.
🔹 Divergences
The divergence detector is disabled by default. Traders can enable it and adjust the divergence length from the settings panel.
As we can see in the chart above, by changing the length of the divergences, traders can fine-tune their detection, a small number will detect smaller divergences, and use a larger number for larger divergences.
🔶 SETTINGS
Data: Select data source, close price by default
Data Length: Select the length for data gathering
Smoothing Length: Select the length for data smoothing
Divergences: Enable/Disable divergences detection and length
Indicator
Altcoin Reversal or Correction DetectionINDICATOR OVERVIEW: Altcoin Reversal or Correction Detection
Altcoin Reversal or Correction Detection is a powerful crypto-specific indicator designed exclusively for altcoins by analyzing their RSI values across multiple timeframes alongside Bitcoin’s RSI. Since BTC's price movements have a strong influence on altcoins, this tool helps traders better understand whether a reversal or correction signal is truly reliable or just noise. Even if an altcoin appears oversold or overbought, it may continue trending with BTC—so this indicator gives you the full picture.
The indicator is optimized for CRYPTO MARKETS only. Not suitable for BTC itself—this is a precision tool built only for ALTCOINS only.
This indicator is not only for signals but also serves as a tool for observing all the information from different timeframes of BTC and altcoins collectively.
How the Calculation Works: Algorithm Overview
The Altcoin Reversal or Correction Detection indicator relies on an algorithm that compares the RSI values of the altcoin across multiple timeframes with Bitcoin's RSI values. This allows the indicator to identify key market moments where a reversal or correction might occur.
BTC-Altcoin RSI Correlation: The algorithm looks for the correlation between Bitcoin's price movements and the altcoin's price actions, as BTC often influences the direction of altcoins. When both Bitcoin and the altcoin show either overbought or oversold conditions in a significant number of timeframes, the indicator signals the potential for a reversal or correction.
Multi-Timeframe Confirmation: Unlike traditional indicators that may focus on a single timeframe, this tool checks multiple timeframes for both BTC and the altcoin. When the same overbought/oversold conditions are met across multiple timeframes, it confirms the likelihood of a trend reversal or correction, providing a more reliable signal. The more timeframes that align with this pattern, the stronger the signal becomes.
Overbought/Oversold Conditions & Extreme RSI Values: The algorithm also takes into account the size of the RSI values, especially focusing on extreme overbought and oversold levels. The greater the RSI values are in these extreme regions, the stronger the potential reversal or correction signal. This means that not only do multiple timeframes need to confirm the condition, but the magnitude of the overbought or oversold RSI level plays a crucial role in determining the strength of the signal.
Signal Strength Levels: The signals are classified into three levels:
Early Signal
Strong Signal
Very Strong Signal
By taking into account the multi-timeframe analysis of both BTC and the altcoin RSI values, along with the magnitude of these RSI values, the indicator offers a highly reliable method for detecting potential reversals and corrections.
Who Is This Indicator Suitable For?
This indicator can also be used to detect reversal points, but it is especially effective for scalping. It highlights potential correction points, making it perfect for quick entries during smaller market pullbacks or short-term trend shifts, which is more suitable for scalpers looking to capitalize on short-term movements
Integration with other tools
Use this tool alongside key Support and Resistance zones to further enhance your trade by filtering for even better quality entries and focusing only on high-quality reversal or correction setups. It can be also used with other indicators and suitable with other personalised strategies. Indicator
Triple Doji SequenceThe Triple Doji Sequence indicator helps traders identify consecutive Doji candlestick patterns, allowing them to choose between spotting single, double, or triple Dojis. A Doji is detected when the candle's body is small relative to its wicks, with either the upper or lower wick being significantly larger. Users can customize their own Doji criteria by adjusting the body size and wick dominance settings. The indicator ensures that consecutive Dojis align in the same direction before confirming a valid pattern, making it easier to identify market indecision or potential trend reversals.
When the chosen Doji sequence is detected, the indicator plots a star (*) above bearish Dojis (upper wick dominant) and below bullish Dojis (lower wick dominant). It also sends alerts when a valid sequence is confirmed at the close of the bar. This tool helps traders refine their strategy by spotting repeated Doji formations, which may indicate key turning points or continuation patterns in price action.
How to Use the Triple Doji Sequence Indicator?
Apply the Indicator:
Add the Triple Doji Sequence indicator to your PulseWire chart.
It will automatically scan for Doji patterns based on your settings.
Customize Your Doji Criteria:
Adjust the body size and wick dominance settings to define what qualifies as a Doji.
Choose whether to detect single, double, or triple Doji sequences.
Interpret the Signals:
A star (*) above a candle signals a bearish Doji (upper wick dominant).
A star (*) below a candle signals a bullish Doji (lower wick dominant).
Set Up Alerts:
Enable alerts to receive notifications when a Doji sequence is confirmed at bar close.
Choose alert frequency based on your trading strategy (e.g., once per bar, once per bar close).
Use in Trading Strategy:
Doji sequences can indicate trend reversals or market indecision.
Combine this indicator with support/resistance levels, volume, or other indicators to confirm signals.
PS: Good luck in finding a Triple Doji :) Indicator
